There are many things to keep in mind when finding home owner’s insurance, including knowing the value of your home and it’s contents before setting out to find a policy. Create a written inventory of the items in your home in case disaster strikes, and make sure you keep this tucked away safely.
A good way to achieve savings on a homeowner’s policy is to pay off your mortgage. Many insurance providers believe that those who actually own their home are more apt to care for it. If you pay your mortgage fully, your insurance premiums will fall.
When considering insurance for your home, keep in mind that having your mortgage paid off can actually effect your premium amount. Insurance companies will commonly reward you with a lower premium if your mortgage is paid off, because it is generally thought that a home will be better taken care of if it is fully owned.
For things like homeowner’s insurance, there are things that you can do to help lower the cost of your coverage. Things like a home alarm that is monitored by a central location, can help drop your premium almost as much as 5%. You need to have proof of the alarm to show your insurance company, so you have your contract or bill of sale to show them.
To save money on your homeowners insurance, you should pay off the mortgage as soon as possible. Most companies will consider you a smaller risk when there is no debt against a property and you will take better care of the property. Look into how much faster you can pay the loan off, by refinancing at 15 years instead of 30.
As you can see, an insurance agent can help you determine which of their many policies will best suit your situation and budget. You can help your agent come up with a coverage plan if you share a list of your valuable items. This record will also show the contents of your home, in case it is ever destroyed.